Brainworks_Capital_Management_2012_Annual_Report

2012 FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2012
31
3.3 PROPERTY AND EQUIPMENT
3.3.1 RECOGNITION AND MEASUREMENT
Items of equipment are measured at cost, less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset.
3.3.2 DEPRECIATION
Items of equipment are depreciated on a straight-line basis in profit or loss over the estimated useful lives
of each component. Items of equipment are depreciated from the date that they are installed and are ready
for use. The estimated useful lives for the current and comparative years of significant items of property and
equipment are as follows:
Leasehold improvements
Motor vehicles
Computer equipment
Office equipment
Furniture and Fittings
5 years
5 years
5 years
5 years
5 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if
appropriate.
3.4 LEASED ASSETS
Operating leases are not recognised in the Company’s statement of financial position.
3.5 IMPAIRMENT
3.5.1 NON-DERIVATIVE FINANCIAL ASSETS
A financial asset not classified as at fair value through profit or loss is assessed at each reporting date to
determine whether there is objective evidence that it is impaired. A financial asset is impaired if there is
objective evidence of impairment as a result of one or more events that occurred, after the initial recognition
of the asset, and that loss event(s) had an impact on the estimated future cash flows of that asset that can be
estimated reliably.
Objective evidence that financial assets are impaired includes default or delinquency by a debtor; restructuring
of an amount due to the Company on terms that the Company would not consider otherwise; indications
that a debtor or issuer will enter bankruptcy; adverse changes in the payment status of borrowers or issuers;
economic conditions that correlate with defaults or the disappearance of an active market for a security. In
addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its
cost is objective evidence of impairment.
Financial assets measured at amortised cost
The Company considers evidence of impairment for financial assets measured at amortised cost at both a
specific asset and collective level. All individually significant assets are assessed for specific impairment. Those
found not to be specifically impaired are then collectively assessed for any impairment that has been incurred
but not yet identified. Assets that are not individually significant are collectively assessed for impairment by
grouping together assets with similar risk characteristics default, the timing of recoveries and the amount of
loss incurred, adjusted for management's judgment as to whether current economic and credit conditions are
such that the actual losses are likely to be greater or less than suggested by historical trends.
BRAINWORKS CAPITAL MANAGEMENT (PRIVATE) LIMITED
2012 ANNUAL REPORT